Egon von Greyerz: The West Will Go the Way of Debt Implosion & Inflation
Tom welcomes back Egon von Greyerz, Founder and Managing Partner of Matterhorn Asset Management AG based in Switzerland.
He explains how the debt ceiling is a farce, and a regular show every time it’s reached. It’s been raised over a hundred times and every time, it’s nothing but a political posturing. This is only going to lead to the debt being increased exponentially. Firesince Reagan, the U.S. debt has doubled every eight years, and by 2025, it is projected to reach around $40 trillion. The Fed will likely reach a point where it will no longer be able to control the interest rates. This signifies a dire situation that is further complicated by the fact that no one wants to buy bonds from a country that is technically bankrupt. To try and keep the debt at bay, the U.S. will most likely deploy inflationary tactics, resulting in an increase in prices.
Looking at the macroeconomic scenario, investing in gold is the way to go to safeguard assets from the insecurity caused by risky assets.
Additionally, Egon emphasizes that banks in the E.U. are no better off than those in the United States, and the current economic system would have worked much better if supply and demand were allowed to rule, as opposed to the continuous government interference.
Finally, we are seeing a decline in the West, which could potentially lead to occasional conflict. Nevertheless, Egon advises that we help each other to make it through this rocky patch, as it’s going to be difficult for everyone no matter what.
Time Stamp References:
0:00 – Introduction
0:43 – U.S. Debt Ceilings
6:13 – Debt Pool Analogy
11:16 – YCC & C.B. Purchases
13:40 – Banking Contagion
23:54 – Bail-In Concerns
27:02 – EU & Western Banking
32:05 – What Breaks Next?
35:00 – Eastern Nations & Gold
42:36 – Domestic Gold Production
47:57 – Gold Price & Meaning
51:08 – Inflation End-Game
54:55 – Concluding Thoughts
Talking Points From This Episode
- Why the U.S. Debt Ceiling is just politcal posturing.
- European banks are just as bad off as the United States.
- The West is in decline and it will take time to correct.
Egon von Greyerz is Founder & Managing Partner of Matterhorn Asset Management AG. He started Matterhorn Asset Management (MAM) in 1999 as a private investment company. From the very beginning, wealth preservation was an essential cornerstone of the company. In early 2002, they believed that financial and economic risk in the World was getting uncomfortably high. So that year, they made substantial investments in the physical gold market at $300 on average.
As gold started to rise in the early 2000s, demand for physical gold increased, and in 2005 they set up a regulated company in Zurich – Matterhorn Asset Management AG. A couple of years later, they formed GoldSwitzerland, which is the precious metals division of MAM.
Egon was Born with both Swiss and Swedish citizenship. His education was mainly in Sweden. He started his working life in Geneva as a banker and after he spent 17 years as Finance Director and Executive Vice-Chairman of Dixons Group Plc.
Since the 1990s, Egon has been actively involved with financial investment activities, including mergers and acquisitions and Asset allocation consultancy for private family funds. This led to the creation of MAM, an asset management company based on wealth preservation principles. MAM is now the World’s leading company for physical gold and silver outside the banking system, directly owned by the investor. Their four vaults include the most immense and safest gold vault in the World, located in the Swiss Alps. Clients are High Net Worth Individuals, Family Offices, Pension Funds, Investment Funds, and Trusts in over 75 countries.
Egon makes regular media appearances and speaks at investment conferences around the World. He also publishes articles on precious metals, the world economy, and wealth preservation.